The Wall Street bank, which has about 5,300 employees in Britain, said its total pay packet went down by 21 per cent, but the share of revenues paid out to staff increased to 42 per cent.

British banks, including the bailed-out Royal Bank of Scotland, will post their figures next month, which are expected to anger taxpayers.

“Every pound going on bonuses is another pound less to lend to small businesses,” a Government source was quoted as saying.

The Government is expected to promise to end “rewards for failure”, as well as the “old boys’ network” of remuneration committees.

Vince Cable, the Business Secretary, is due to announce measures on Tuesday to curb excessive pay. They will not include proposals favoured by Mr Cable to allow workers to sit on pay committees, which would give them an opportunity to debate their bosses’ earnings.

The Prime Minister is facing increasing pressure to act over the state of the economy after gloomy unemployment figures showed that the number without jobs had risen to a 17-year high.

George Osborne, the Chancellor, said figures out on Wednesday could show Britain was slipping back into recession.

Ed Miliband, the Labour leader, had yesterday criticised the country’s “rip-off consumer culture” and urged the Prime Minister to take action against excessive charges on savings, holidays, banking and parking.

He suggested a new watchdog to regulate bank charges, which total £2 billion a year.

He told The Daily Telegraph: “Making a fair profit is important but it can’t be done in an underhand and predatory way. This is about power in relation to private services and how government can be on the consumer’s side.

“Lots of businesses recognise this. It’s part of how you build a competitive economy in the world.”